PROVIDENCE, R.I.--(BUSINESS WIRE)--Jul. 20, 2015--
United Natural Foods, Inc. (Nasdaq: UNFI) (the "Company") today
announced that its contract as a distributor to Albertsons Companies,
Inc. (“Albertsons”), which includes the Albertsons, Safeway and Eastern
Supermarket chains, will terminate on September 20, 2015, rather than
upon the original contract end date of July 31, 2016.
For the Company's fiscal year ending August 1, 2015, revenue from
Albertsons is expected to be approximately $410 million. The Company
does not expect its fiscal fourth quarter financial results or its
current fiscal 2015 guidance to be impacted by this announcement. The
Company anticipates taking a one-time charge reflecting severance and
associated termination costs in the first quarter of fiscal 2016, which
will be disclosed in September 2015 when the Company reports its fourth
quarter and full year 2015 results, and provides its fiscal 2016
guidance.
“We are disappointed to end our existing relationship with Albertsons,”
said Steve Spinner, the Company's President and Chief Executive Officer.
“However, we believe that this course of action is in the best long-term
interests of United Natural Foods as it will now allow us to redirect
our resources to pursue our previously announced plans to expand our
focus in fresh categories such as proteins and specialty cheeses across
the country, grow our gourmet and ethnic business, and serve as an
e-commerce solution for our customers. We plan to utilize the capital
freed up from the termination of our Albertsons’ relationship to further
pursue our strategic objectives, and we believe this will provide
greater value for our shareholders long-term.”
About United Natural Foods
United Natural Foods, Inc. (http://www.unfi.com)
carries and distributes more than 80,000 products to more than 40,000
customer locations throughout the United States and Canada. The Company
serves a wide variety of retail formats including conventional
supermarket chains, natural product superstores, independent retail
operators and the food service channel. United Natural Foods, Inc. was
ranked by Forbes Magazine in 2014 as one of “America's Best Managed
Companies,” ranked by Fortune in 2012 as one of its “Most Admired
American Companies,” and chosen by Food Logistics Magazine as one of its
2013 Top 20 Green Providers.
For more information on United Natural Foods, Inc., visit the
Company’s website at www.unfi.com.
Safe Harbor Statement under the Private Securities Litigation Reform
Act of 1995: Statements in this press release regarding the Company's
business that are not historical facts are "forward-looking statements"
that involve risks and uncertainties and are based on current
expectations and management estimates; actual results may differ
materially. The risks and uncertainties which could impact these
statements are described in the Company's filings under the Securities
Exchange Act of 1934, as amended, including its annual report on Form
10-K filed with the Securities and Exchange Commission (SEC) on October
1, 2014 (as amended on March 12, 2015), its quarterly reports on Form
10-Q filed with the SEC on December 10, 2014 (as amended on March 12,
2015), March 12, 2015 and June 11, 2015 and other filings the Company
makes with the SEC, and include, but are not limited to, the Company's
dependence on principal customers; the Company's sensitivity to general
economic conditions, including the current economic environment, changes
in disposable income levels and consumer spending trends; the Company's
ability to reduce its expenses in amounts sufficient to offset its
increased focus on sales to conventional supermarkets and the shift in
the Company's product mix as a result of its acquisition of Tony's Fine
Foods (“Tony’s”) and the resulting lower gross margins on those sales;
the Company's reliance on the continued growth in sales of natural and
organic foods and non-food products in comparison to conventional
products; the Company's ability to timely and successfully deploy its
warehouse management system throughout its distribution centers and its
transportation management system across the Company; volatility in fuel
costs; the Company's sensitivity to inflationary and deflationary
pressures; the relatively low margins and economic sensitivity of the
Company's business; the potential for disruptions in the Company's
supply chain by circumstances beyond its control; the risk of
interruption of supplies due to lack of long-term contracts, consumer
demand for natural and organic products outpacing suppliers’ ability to
produce those products, severe weather, work stoppages or otherwise;
union-organizing activities that could cause labor relations
difficulties and increased costs; the ability to identify and
successfully complete acquisitions of other natural, organic and
specialty food and non-food products distributors; management's
allocation of capital and the timing of capital expenditures; and the
Company's ability to successfully deploy its operational initiatives to
achieve synergies from the acquisition of Tony’s. Any forward-looking
statements are made pursuant to the Private Securities Litigation Reform
Act of 1995 and, as such, speak only as of the date made. The Company is
not undertaking to update any information in the foregoing reports until
the effective date of its future reports required by applicable laws.
Any projections of future results of operations are based on a number of
assumptions, many of which are outside the Company's control and should
not be construed in any manner as a guarantee that such results will in
fact occur. These projections are subject to change and could differ
materially from final reported results. The Company may from time to
time update these publicly announced projections, but it is not
obligated to do so.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150720006348/en/
Source: United Natural Foods, Inc.
United Natural Foods, Inc.
Mark Shamber
Chief Financial
Officer
(401) 528-8634
or
ICR
Katie Turner
General
Information
(646) 277-1228